Is a senior center's fund-raising exempt from Kansas sales tax?

Plain-English summary

A senior center asked whether its fund-raising is exempt from Kansas sales tax. The Department advised that the center has no exemption and must collect Kansas sales tax on all of its taxable receipts, including fund-raising projects. The Department noted at the outset that its reply "is an informational letter only and not a private letter ruling pursuant to K.A.R. 92-19-59."

The Department explained the state of the law. Governor Bill Graves had signed Senate Bill 493 into law, effective July 1, 1998, which "contained several sales tax exemptions to deserving organizations, including non-profit zoos and parent-teacher organizations." But it stressed the general rule: "not every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not."

Because senior centers were not among the organizations the Legislature chose to exempt, the Department told the center that "[a]n exemption for senior centers, such as yours would require a change to Kansas statutes through legislative action," and suggested it "contact your elected Kansas representative and senator." In closing, the Department was direct: "your organization would be obligated to collect the appropriate Kansas sales tax(es) on all their taxable receipts, including fund raising projects."

What this means for you

Senior centers

You have no blanket sales tax exemption in Kansas. On your taxable sales — including items sold through fund-raisers — you must collect and remit the appropriate Kansas sales tax.

Non-profits generally

Being a non-profit does not by itself make you sales-tax-exempt in Kansas. Exemptions belong only to the specific categories of organizations the Legislature has named (for example, in Senate Bill 493, non-profit zoos and parent-teacher organizations). If your type of organization is not on the list, your taxable sales are taxable.

If you want an exemption

The route is legislative. A new exemption for senior centers would require the Legislature to amend the Kansas statutes, so raising it with your elected representative and senator is the appropriate path.

Common questions

Q: Does a senior center have to collect Kansas sales tax on its fund-raisers?
A: Yes. The senior center has no exemption, so it must collect the appropriate Kansas sales tax on its taxable receipts, including fund-raising projects.

Q: Isn't a non-profit automatically exempt?
A: No. Only organizations the Legislature specifically names are exempt; many non-profits, including senior centers, are not.

Q: How could a senior center become exempt?
A: Only through legislative action amending the Kansas statutes — which is why the Department suggested contacting elected officials.

Citations and references

• The letter is informational and does not cite a specific statute for its holding. It references Senate Bill 493 (signed by Governor Bill Graves, effective July 1, 1998), which added sales tax exemptions for certain organizations (including non-profit zoos and parent-teacher organizations) but not for senior centers, and explains that any senior-center exemption would require further legislative action.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-1999-01

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

January 5, 1999

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Dear Mr. TTTTTTTTT:

We wish to acknowledge receipt of your letter dated December 8, 1998, regarding the application of Kansas Retailers’ Sales tax.

This is an informational letter only and not a private letter ruling pursuant to K.A.R. 92-19-59.

Governor Bill Graves signed Senate Bill 493 into law, which became effective July 1, 1998. It contained several sales tax exemptions to deserving organizations, including non-profit zoos and parent-teacher organizations.

Many organizations, such as your senior center, perform a great deal of services for their communities with the funds that they raise. However, not every non-profit organization enjoys an exemption from Kansas sales tax. Yours does not.

An exemption for senior centers, such as yours would require a change to Kansas statutes through legislative action. Therefore, you may also wish to contact your elected Kansas representative and senator.

In closing, your organization would be obligated to collect the appropriate Kansas sales tax(es)on all their taxable receipts, including fund raising projects.

If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Date Composed: 01/25/1999 Date Modified: 10/10/2001

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